I think your best bet would be to put a long/medium term tenant in the basement and airbnb out the ADU.

Especially since you would be completely dependent on how the neighborhood market for that property is performing versus forcing the equity yourself.

I bet that would be higher than the interest savings. 

Part of the job is to evaluate property operations versus forecasted operations, overseeing renovation works, etc.

Your appreciation will be tied to your income growth and cap rate, versus straight market appreciation.

I'd actually be willing to bet that in the next 10 years you will see greater % appreciation in an area like Lexington around the West Baltimore MARC station than you will in Canton unless Baltimore can figure out how to solve it's property tax problem. 

Don't go out prematurely thinking you'll know the best bet based off of reading a book or some forumsWarren above says..."

@Christian WalkerIt’s up to you as far as equity versus debt investors.  

The properties listed on the websites for each date get continued about 85% of the time, probably more now.REO are a better bet on the market as @David M.said.

Specifically with this I would bet your best total play would be to purchase it with 3 or 5% down conventional loan and refinance in 6 months.